ServiceNow earnings: third quarter 2026

ServiceNow, which sells cloud software that large companies use to run their workflows, grew sales by about 20.5% to $4,106 million in the third quarter of 2026, almost all of it from subscriptions. Its reported profit fell sharply. Delivery costs, stock-based pay, write-offs on businesses it bought and new interest on debt all climbed faster than sales. The company spent heavily on acquisitions this year, paying with cash and borrowing. It raised its full-year subscription sales forecast and its target for AI contracts. It also expects slower growth next quarter in contracted sales due within a year. ¹

Against what analysts expected

Analysts' average forecast was $0.56 of earnings per share, according to Nasdaq's earnings calendar. ServiceNow's reported figure of $0.27 came in below that, and its own figure excluding items such as stock-based pay, $1.00, came in above it, so whether the quarter was above or below the forecast depends on which measure is used. ¹²

The strong points

• Sales grew about 20.5% from a year ago, nearly all of it from subscriptions. ¹
• ServiceNow raised its target for the yearly value of its AI contracts this year to $1.7 billion, its second raise of the year. ¹
• Cash from running the business was about three times the reported profit, at $839 million. ¹

The weak points

• Reported earnings per share fell to $0.27 from a year ago, even though sales rose. ¹
• The cost of delivering its subscriptions jumped to $1,054 million, rising far faster than subscription sales. ¹
• Interest on its debt rose to $81 million in the quarter, after the company borrowed to help pay for this year's acquisitions. ¹

What the company expects

• ServiceNow raised its forecast for this year's subscription sales to $15,780 to $15,790 million, about 22.5% growth. ¹
• For the fourth quarter, the company expects contracted sales due within the next year to grow 18.5%, slower than in the third quarter. ¹

Our verdict on the quarter

A strong report. Sales grew about a fifth and the company raised its full-year subscription sales forecast, but reported profit fell sharply and growth in signed sales due within a year is expected to slow, which is a real soft spot.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. ServiceNow's results release, 28 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 28 October 2026. ↩